S&P 500 and Nasdaq 100: Apple Crashes, VIX Soars—Is the Tech Selloff Signaling a Deeper Slide?

Stocks Trim Losses After Tariff Rumor Denial, Volatility Spikes

U.S. stocks were broadly lower at mid-session Monday, retreating under the weight of renewed tariff concerns and recession fears. Equities opened sharply in the red, led by a selloff in major tech names, before paring some losses after the White House dismissed a report suggesting a 90-day tariff pause was under consideration. Despite the rebound, all major sectors except communication services traded lower, and volatility surged to levels not seen since last summer.

Is a Bear Market Near as Recession Bets Rise?

The S&P 500 briefly approached bear market territory, down nearly 20% from its peak, as traders reacted to reports of President Trump ruling out new trade talks with China. Early session losses were fueled by growing concern the administration’s aggressive tariff stance could drag the economy into recession.

Futures markets priced in nearly five rate cuts from the Federal Reserve this year, reflecting expectations that policymakers may need to act sooner rather than later.

Volatility Surges, Signaling Market Stress

The Cboe Volatility Index (VIX) jumped as high as 60.13 before settling back to 49.83, still reflecting elevated fear levels. Market participants rushed to hedge positions, with analysts noting that such extreme VIX levels often coincide with selling exhaustion. Still, few expect a quick fade in volatility this time, given the scope of economic and geopolitical risks. Traders are watching closely for signs of capitulation or broader support levels to hold.

Tech Rout Deepens as Tariffs Threaten Margins

The so-called “Magnificent Seven” tech stocks extended steep losses, erasing another $2 trillion in market value. Apple dropped 5.8% to near one-year lows following a sharp price target cut by Wedbush, which warned tariffs could force the company to raise iPhone prices. Tesla fell 4.6% on concerns about its exposure to China, with analyst Dan Ives slashing his target price to $315 and citing CEO Elon Musk’s political profile as a growing liability overseas.

Which Sectors Are Getting Hit the Hardest?

Energy, real estate, and materials led sector declines, each down more than 2%. Technology, though down just under 1%, dragged the broader market due to its heavy weight. Communication services was the only gainer, up 0.54%, driven by a rebound in select names.

MicroStrategy plunged over 10%, while AppLovin and Lam Research posted modest gains, offering little relief in an otherwise risk-off environment.

Market Outlook: Will Tariff Uncertainty Drive More Volatility?

With the White House dismissing talk of a broad tariff pause, markets remain vulnerable to policy headlines. Traders are bracing for further volatility as the S&P 500 teeters near bear market levels. Attention now turns to Fed communications and any signs of economic deterioration in upcoming data.

Until clarity emerges on trade policy, volatility is expected to remain elevated, and rallies may face resistance without a shift in macro conditions.

More Information in our Economic Calendar.